Financial statements | Contents
Section B: Notes to the Group financial statements for the year ended 30 June 2025
B6 Income tax (continued) Reconciliation of income tax expense/(benefit) to prima facie tax payable
2025
2024 $M $M
Profit before income tax
118
379 114
Tax at the Australian tax rate of 30% (2024: 30%)
35
Tax effect of amounts which are not deductible/(taxable) in calculating taxable income: Trust income not subject to tax 1
(149)
(211)
Equity accounted results Non-assessable interest
36 —
101
(20)
Non-deductible depreciation Under provision in prior years
8 3 8
7 7 5 3
Sundry items
(60)
Tax (benefit)/expense relating to items of other comprehensive income and equity Cash flow hedges
(13)
15
Foreign currency translation
(5) (9)
4
Cost of hedging
(15)
(27) 4 1. THT operates as a flow-through trust, and is not liable to pay tax. Security holders, therefore, pay tax on the distributions they receive from THT at their individual marginal tax rates. The Group is structured in this way because the initial heavy capital investment and associated debt funding required for infrastructure investments results in accounting losses being generated in the initial years which would otherwise prevent the Group from paying dividends. THT allows distributions to be made to security holders throughout the life of the assets. Current tax assets and liabilities As at 30 June 2025, the current tax liabilities of the Group relate to current tax liabilities for the Airport Motorway Pty Limited (AML) tax consolidated group and Transurban Queensland Finance (TQ) as a standalone entity, and current tax assets of the Group relate to income tax receivable for DRIVe US tax consolidated group and Transurban Cardinal Holdings as a standalone entity. Deferred tax assets and liabilities Assets Liabilities 2025 2024 2025 2024 $M $M $M $M The balance comprises temporary differences attributable to: Provisions 538 428 (19) (16) Current and prior year losses 447 537 — — Fixed assets/intangibles 626 620 (859) (945) Concession fees and promissory notes — — (229) (206) Derivatives and foreign exchange 604 432 (498) (369) Lease liabilities 35 41 — — Equity accounted investments — — (989) (985) Other 30 28 — — Tax assets/(liabilities) 2,280 2,086 (2,594) (2,521) Set-off of tax (1,284) (1,136) 1,284 1,136 Net tax assets/(liabilities) 996 950 (1,310) (1,385)
Movements: Opening balance at 1 July Credited to profit and loss Credited/(charged) to equity Foreign exchange movements
2,086
2,196
(2,521)
(2,670)
145 156
72
70
121
(10)
(129)
6 6 3
2
—
(14)
Transfer from deferred tax assets/liabilities
—
(3)
—
Current year losses recognised/(prior year losses utilised) and under/(over) provision in prior years
(109)
(169)
—
13
Closing balance at 30 June
2,280
2,086
(2,594)
(2,521)
The Group has $35 million of unrecognised tax losses as at 30 June 2025 (2024: 36 million).
121
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